Chicago Park Employees' Annuity & Benefit Fund hired BH-DG Systematic Trading to run a systematic trend-following strategy.
The $335 million pension fund's board approved the hiring at its Feb. 16 meeting, recently released meeting minutes show.
The pension fund issued two RFPs in July for managers that offer long-volatility strategies and systematic trend-following strategies. The RFPs said the pension fund was searching for a manager that offers a strategy that is positively correlated to volatility and negatively correlated to equity assets and a manager that utilizes "a systematic, repeatable process to profit from market trends by taking long and/or short positions across equities, fixed income, currencies, and commodities," according to the RFPs posted on the pension fund's website.
According to the minutes, the exact amount of that allocation will be determined following its 2023 asset allocation review. The minutes do not mention whether this completes the entire search.
Aspect Capital and Versor Investments were the other finalists.
As of Dec. 31, the pension fund's actual allocation to risk-mitigating strategies was 17.6%; the target is 18%.
Investment consultant Meketa Investment Group assisted.
Steve Swanson, the pension fund's executive director, could not be immediately reached for further information.